7-1 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Appraising and Managing Performance Chapter 7.

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Copyright ©2010 Pearson Education, Inc. publishing

as Prentice Hall

Appraisingand

Managing Performance

Chapter 7

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as Prentice Hall

What is a performance appraisal? Identifying Performance Dimensions Measuring Performance Challenges to Effective Performance Appraisals

Managing Performance Managing the Cause of Problems

Chapter 7 OverviewChapter 7 Overview

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What Is Performance What Is Performance Appraisal?Appraisal?

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Uses of Performance AppraisalUses of Performance Appraisal

Administrative purposes

Developmental purposes

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Dimension—aspect of performance Determines effective job performance Should be based on job analysis E.g. quality, quantity, and interpersonal skills

IdentificationIdentification

Competencies Increasingly popular basis for

performance appraisal dimensions

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Relative judgment appraisal format Supervisors compare employees to each

other Rank employees in a work area May not know actual performance levels

Measurement: Type of Measurement: Type of JudgmentJudgment

Absolute judgment appraisal format Supervisors make judgments about

workers Performance based standards Easier to defend in court

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Measurement: Focus of Measurement: Focus of MeasureMeasure Trait appraisal instruments

Focus is on individual, not performance Subject to perceptual biases

Behavioral appraisal instruments Assess worker’s behaviors BARS (see Figure 7.7, p. 219)

Outcome appraisal instruments Focus on specific outcomes MBO and Naturally Occurring

outcomes

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Measurement ToolsMeasurement Tools

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Person doing rating determines accuracy Tool used less important

MeasurementMeasurement

Most ratings “top-down” Also have:

Self-rating Peer review Subordinate review Customer review 360 feedback

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Rater errors Reflect underlying biases by the rater Halo effect Range restriction Personal bias

Measurement: Pitfalls and Measurement: Pitfalls and ChallengesChallenges

Comparability Frame-of-reference (FOR) training

Scenarios, role-playing, etc. To “calibrate” raters to same standards

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“Liking”—influence of personal feelings

Measurement: Pitfalls and Measurement: Pitfalls and ChallengesChallenges

Precautions Keep records, regularly Reflect behavior, not opinions If problem exists, address it immediately

Organizational Politics Worker’s appraisal depends on

supervisor’s goals Most feel appraisals are political

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Measurement: Groups and Measurement: Groups and TeamsTeams Assess both group and indiv. contributions Use behavioral measures for individuals Develop individual measures with team

input Keep team measurements balanced

Financial outcomes are good, but not only measures

Look at both outcome and process measures Team must be able to influence

measurement criteria

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Anti-discrimination laws apply to performance appraisals

Measurement: Legal IssuesMeasurement: Legal Issues

Factors influencing judges’ decisions: Use of job analysis Providing written instructions Allow employees to review appraisal

results Agreement among multiple raters Presence of rater training

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Managing PerformanceManaging Performance

The AppraisalInterview

Helpful or Dreadful?

Include Salary Discussion?

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Performance from: Ability, motivation and situation factors

Performance ImprovementPerformance Improvement

Performance mgmt should be an ongoing, day-to-day process

When problems; explore causes Including situational or system factors Fundamental Attribution Error

(Actor/Observer Bias)

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Recognize two roles: Judge and Coach Four characteristics of effective managers Direct attention to cause of problem Develop action plan Empower workers to reach a solution Direct communication at performance

Provide effective feedback Be as specific as possible

Managing Performance: Effective Managing Performance: Effective ManagersManagers

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How to Determine and Remedy How to Determine and Remedy Performance ShortfallsPerformance Shortfalls

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Summary and ConclusionsSummary and Conclusions

Performance appraisals future oriented Identify the dimensions of the job that

determine effective performance Rating quality function of raters

Thus, train the raters Recognize and avoid rating biases Provide useful feedback Don’t save “laundry list” for annual appraisal Manage performance regularly

7-1 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Appraising and Managing Performance Chapter 7.

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